Fiat/Chrysler is the latest company to offer bonuses to employees in the wake of the passage of President Trump's and Republicans' tax cut law, and they're big ones.
New Tax Law Brings Big Bonuses for Chrysler Workers
Many at Belvidere Plant to receive $2000 bonus due to tax law
By: Scott Picken
Posted: Jan 11, 2018 05:27 PM CST
BELVIDERE - Fiat/Chrysler is the latest company to offer bonuses to employees in the wake of the passage of President Trump's and Republicans' tax cut law, and they're big ones. Approximately 60,000 employees will receive a $2000 bonus in the 2nd quarter of 2018, including employees at the Belvidere Assembly plant according to a FCA spokesperson.
Fiat/Chrysler says the tax plan will also mean the return of manufacturing jobs to the U.S. from Mexico. The Company confirmed that it will invest more than $1 billion to modernize the Warren, MI Truck Assembly Plant to produce the next generation Ram Heavy Duty truck, which will relocate from its current production location in Saltillo, Mexico, in 2020.
In all, FCA says its investment in heavy duty truck production will produce 2500 more jobs in the U.S. Since 2009, they report total U.S. investment of more than $10 billion creating more than 25,000 jobs, including the re-tooling of the Belvidere Assembly Plant to manufacture Jeep Cherokees at a cost of $350 million and the addition of 300 more jobs.
“These announcements reflect our ongoing commitment to our U.S. manufacturing footprint and the dedicated employees who have contributed to FCA’s success,” said Sergio Marchionne, Chief Executive Officer, FCA in a statement. “It is only proper that our employees share in the savings generated by tax reform and that we openly acknowledge the resulting improvement in the U.S. business environment by investing in our industrial footprint accordingly.”
Fiat/Chrysler joins a list of nearly 200 U.S. companies which have announced bonuses or pay increases to employees after the passage of the tax bill. The new law, which cuts the corporate tax rate to 21%, eliminates loopholes, and doubles the standard deduction for individuals and families, was supported by Rep. Adam Kinzinger (R-IL 16) but opposed by Rep. Cheri Bustos (D-IL 17), and Sen. Dick Durbin (D-IL) and Sen. Tammy Duckworth (D-IL).
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